Crane lifting a red container next to a ruck

Privatisation and PPP key to improving SOE efficiency

Across Africa state privatisation and Public Private Partnerships (PPP) are being turned to as a way to improve infrastructure, enhance service delivery, and provide stability to State Owned Enterprises (SOEs). While privatization and PPP projects are different, certain aspects of PPPs can be adapted for the privatisation of SOEs, to make them appealing to private investment. This can be done by buying assets or outright buying SOEs. This way governments can reduce their financial risk while improving the operation and delivery of SOEs.

Cresco group has extensive experience providing a wide range of services to private companies and governments contemplating investing in PPP projects or undertaking privatization projects. With a proven track record and experience across a diverse portfolio of industries, our team are willing to do the groundwork to turn PPP and privatisation projects into bankable solutions and increase the likelihood of its success.

Cresco Group believes that privatisation and PPP projects can significantly impact South Africa’s economy in various ways. By improving the management and operation of key SOEs there can be numerous benefits for the economy, including stable energy and more efficient transport of valuable commodities. Cresco Group Managing Director Conrad Hefer explains: “Over the years we have seen how the mismanagment of critical SOEs across Africa has impaired and hampered economic growth. By seeking private investment, privatisation, and PPP infrastructure projects, governments can significantly improve the management and operation of SOEs. This can potentially have a positive impact on vital industries and economies.”

Privatisation of SOEs is often seen as a way to combat rising commodity prices and improve service delivery of existing enterprises, while PPP projects are a way of developing infrastructure. In Botswana, PPP projects are starting to play a crucial role in developing strategic infrastructure. Cresco is a key player in providing expert transaction advisory on such PPP projects.

Currently, Botswana Oil Limited and the Botswanan Government are developing a new fuel storage facility in the county – the Tshele Hills Bulk Petroleum Storage Facility. This storage facility will provide strategic fuel storage capacity for the country. As part of the Turner and Townsend consortium Cresco Group is providing expert financial transaction advisory services to ensure the project is completed timeously and efficiently.

At Cresco, we assist project promoters and sponsors to develop their project with funders’ considerations in mind from the start. Our team works with you to move your project up the value curve, from creation to operation, by applying specialist expertise including financial, commercial and program management skills that your project needs to rise to its full potential. With over 15 years of operation, Cresco has seen the impact that PPP projects can have on African economies. Our team of highly skilled individuals are experts in their fields, providing specialist support for PPP and privatisation projects from start to finish. Reach out to our team for expert PPP and privatisation project management today: https://www.crescogroup.africa/contact-us/

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